BHUBANESWAR: In a move to boost the state’s food processing sector, Odisha Chief Secretary Anu Garg has called for the intensified implementation of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme. Presiding over a State-Level Approval Committee meeting on Wednesday, the Chief Secretary emphasized transforming Self-Help Groups (SHGs) and rural youth into successful micro and medium entrepreneurs through strategic convergence with existing government programs.
A major highlight of the meeting was the announcement that the PMFME scheme, originally scheduled to conclude in 2024-25, has been extended by one year to the 2025-26 financial year. This extension is designed to unlock further benefits for micro-entrepreneurs across the state. Under the scheme, individuals can avail of a 35% credit-linked subsidy, capped at Rs 10 lakh, for setting up new units or modernizing existing ones. Furthermore, SHG members are eligible for seed capital of up to Rs 40,000 each for working capital and small equipment.
Odisha’s Standout Performance
The review meeting highlighted Odisha’s impressive performance in the national landscape. The state has recorded an average loan size of Rs 8.25 lakh, which significantly surpasses the national average of Rs 7.50 lakh. With a fund utilization rate of 94.20%, Odisha has demonstrated a high level of efficiency in executing the program. To date, the scheme has benefited over 31,000 SHG members and provided specialized training to 11,517 individuals, while 3,437 beneficiaries have already received credit-linked subsidies.
Understanding the PMFME Scheme : Launched by the Ministry of Food Processing Industries (MoFPI), the PMFME scheme is a centrally sponsored initiative funded on a 60:40 ratio between the Centre and the State. Its primary objective is to transition unorganized, “backyard” food processing units into the formal sector. Beyond financial subsidies, the scheme provides critical technical assistance for obtaining FSSAI licenses, GST registration, and Udyam enrollment. It also focuses on developing common infrastructure, such as cold storage and processing centers, and enhancing the branding and marketing of local products.
Chief Secretary Anu Garg directed the MSME department to ensure that the scheme reaches the grassroots level, particularly targeting the empowerment of women and small-scale farmers. By improving product quality and market access, the state aims to drive rural economic growth and create sustainable employment opportunities. The meeting was attended by high-ranking officials from various departments, including MSME, Agriculture, Mission Shakti, and Women and Child Development, signaling a multi-sectoral commitment to making Odisha a hub for food processing.